CONTENTS

1) The price of American currency unit
2) The World stock market
3) The Frauds of the U.S. Federal Reserve System
4) Movement of world finance
5) Structure of GDP and structure of employment
6) Export and import
7) Gold of contention

5) Structure of GDP and structure of employment

Quantitatively expressed power and invincibility of dollar is discrediting by the fact that structure of American and any other industrially developed economy becomes in growing extent parasitic.
Here we have some figures describing inferior character of those advanced economies, in particular, GDP and employment structure in some of them.

Table 12. Structure of employment and GDP of the USA, Germany and Austria, 1998 (%)

Source: Yearbook of Labor Statistics 1999. ILO: Geneva, 1999; Yearbook of Labor Statistics 2000. ILO: Geneva, 2000.

It is visible that share of employed in material production as well as specific gravity of material production in GDP structure of these nations is fluctuating within the limits from 25 to 35%. For more cogency we should add dynamics of material sector of the most leading economy – USA – for the last fifty years. Number of workforce employed in production of goods (not services) is permanently diminishing.
Table 13. Dynamics of employment and material production share in U.S. GDP: 1950-1998 (%)

Calculated by: «The Handbook of Basic Economic Statistics», May 1983, p.12-17; Statistical Abstracts of the United States, 1996. Wash., 1996, p.443.

Apparently, the share of material sector production in USA GDP structure is permanently decreasing. The United States becoming economy of service of its global bank and finance networks. How could dollar be strong and reliable currency, secured by fixed assets, by tangible commodity mass? There we got one more reason for unrest about stability of world finances because U.S. dollar remains the pivot of world finances. The worst thing is that diminishing of material production share in GDP structure is a characteristic feature of all developed countries. In most these countries it forms less than 30%. The lack of physical commodity mass especially product of primary sectors (agriculture, mining) is compensating by poor countries that are permanently fall behind in machinery and technology
Let's take dynamic of material sector part of Latin America nations for last fifty years to compare with each other.

Table 14. Dynamics of material production share in GDP structure of some Latin America countries: 1950-1998 (%)

At first sight it may seems that these countries have the same tendency as developed ones. Don't hurry with conclusions. The price for products with unsound reprocessing that is mainly produced by third world countries is growing not so fast as high-technology products. That is why we face with growth of absolute volume of production (in tons, cubic meters, pieces) while price for this production is relatively falling down (in comparison with 'hi-tech' commodities). Local production is calculated in national currency. And all national currencies continuously falling down against U.S. dollar.
So we may see as material sector product (in physical volume) is growing, while in 'dollar volume' it is declining. It is going in parallel with growing volume of outlays on infrastructural sectors and non-material sectors in the price composition of gross domestic product. It is clear that functioning of infrastructure sectors is carrying out according average world prices and tariffs which have being dictated by developed countries (as long as all Networks are Global).
It appears to be poor countries catching up rich ones in terms of price structure of GDP. But in reality they are falling behind more and more. This can be explained by impossibility to cover "shortage" of material sector in their economies, since the prices of infrastructure sectors are constantly increasing and due to the lack of resources available. Hence, poor countries are urged to magnify governmental debt, internal and external, to overlay the scarcity of means to repay services of non-material sectors. There emerges a "price scissors".
Conclusion is following – financial exploitation of the third world takes place through:
a) The «price scissors» between product of primary sectors (agriculture, mining and preliminary manufacturing in less developed countries) and product of industrial countries;
b) unequal position of all world currencies toward the "basket" of leading industrial nations currencies, as well as toward SDR (special exchange of IMF).
When we put together these factors it is aggravate our concern about sharpening contradictions between developed and developing worlds. As if the struggle between world capitalist and world worker had shifted from intra-nation fighting to inter-nation or even inter-region battle, battle between poor and wealthy regions.
World capital regularly uses this circumstance for its lucre pushing ethnic and religious confrontation instead of self-apparent class struggle. Just to secure this instability and false target for struggle capital sells to any side involved arms and ammo. It is the situation, which takes place now. Disjoined laborers of the entire world battering each other for nothing just to protect their own national bourgeois masters. And where is the margin behind which conflicts and encounters are to be the hot phase of world war, creepingly or sharply. Who knows?

6) Export and import

Exploitation of developing countries continues due to imposed from outside division of labour. Production of deep manufacturing is for developed nations, raw materials and pre-fabricates are to developing ones. Poor countries could never escape from this cabala unless their people understand that their vegetating poverty is a foundation for the rich nation prosperity at enormous extent.

Table 15. Export flow from industrial countries, 1997-1998 (bln. US$/ %)

Source: Direction of trade Statistics, June 2000: IMF, Wash.

We are comparing export of industrial countries with their import.

Table 16. Import flow to industrial countries, 1997-1998 (bln. US$/ %)
Import TOTAL

Source: Direction of trade Statistics, June 2000: IMF, Wash.

We could get an impression that most of import industrial countries receive from industrial countries as well. And the same magnitudes of export to industrial countries come from industrial countries. It is true only if we forget about physical structure (substance) of import and export and prices of exported and imported goods.
Industrial countries carry in and bring out mostly finish goods, goods of well-developed industries. The price structure of import-export mainly belongs to finish goods, services and hi-tech commodities. The share of third world climes is falling to raw material, agriculture and primary industries (for instance, metallurgy). Hence they have price misbalance of import and export both developed and developing countries confusing common sense. As a matter of fact main part of economically significant "substance" for industrial economies come from backward nations. Supply of it is enormous, so the price (as well as money 'material') is in hands of rich buyers, while the order of sale-purchase activity is regulated by World Trade Organisation (WTO) originated from General Agreement on Tariffs and Trade (GATT). These institutions is possessed by managers and masters of world capitalism
There is no doubt that power in WTO likewise in IMF, World bank and all world finances so far belongs to advanced capitalism of USA, Western Europe and Japan.
To confirm this I offer developing climes export and import data.

Table 17. Export flow from developing countries, 1997-1998 (bln. US$/ %)

Source: Direction of trade Statistics, June 2000: IMF, Wash.

Have a look, more than half of third world countries export goes to industrial ones. Of course we may assert that it is difficult to distinguish two third of their export (60%) runs to Asia, more exactly to industrial Asian powers. The rest of developing world nations has to enjoy very modest incomes of raw commodity exports, including agricultural products and fishery goods whose price is incommensurable with goods coming from industrialized countries. What are the import figures?

Table 18. Import flow to developing countries, 1997-1998 (bln.US$ / %)

Source: Direction of trade Statistics, June 2000: IMF, Wash.

Again we are watching the same picture. The most portion of third world import had fallen to industrial powers. At the same time the very two third of import goes to Asian countries where a huge amount of workers' hands multiply industrial (and post-industrial) might of wealthy countries.
Let us recall, what are the population of developing countries and number of workforce correspondingly. It will be easy to understand why this trade between rich and poor countries is unequal.

Table 19. Population and workforce of the whole planet, 1998 (mln.pers. / %)

The flagrant disproportion in workforce between industrial countries and less developed ones is found absolutely incomparable with export and import figures from these two halves of the world. The same inequality could be found in the price of the worldwide economy GDP. Industrially developed countries produce 75% of GDP and 25% produce less developed ones. In other words, 84% of overall labour force produce only 25% of world general 'domestic' product!
One serious conclusion beside the others comes from what said above: products and services produced by world economy is quite enough to sustain and reproduce human life of the entire planet. Herewith standard of life quality could be provided according the latest standards of industrial countries. But private property on labour results is guarding beggary!
We may add to this under-utilisation of productive forces in developed countries, the possibility to equip labourers in poor countries with high productive machinery and refusal of production cutback practice (for example, agricultural goods) for keeping acceptable market price, then we should say that bourgeois civilization exists upon its word. The limits of its growth are exhausted; it had outlived itself in practical and theoretical terms. The crush of capitalist formation on the planet is distinctively visible as long as international division of labours that enslaves nations and corresponding mechanism and structure of export-import flows continues to develop.
And this is one more evidence of capitalist civilization death, when one billion people live decently and the rest five billions (exclusive of pair percent local fat cats) mostly live poorly and baldly.
It could not be another way. We make it clear by the look to structure of commodity of less developed countries. We take as an example commodity export structure of Bolivia for the year 1996.

Table 20. Principal commodities of Bolivian export, 1996 (thousand US$)

Source: South America, Central America and the Caribbean 2000 (Regional Surveys of the World). L., 1999. 8th Edition, p.138.

Farm products, mining industry products and primary industry products form 86,6% of Bolivian export. Crude materials in total equal 39,4%. That is export orientation of Latin American country. Resulting balance – difference of export and import – is negative and it composes -556,1 million dollars. GDP volume of the year 1996 recalculated in U.S. dollars was equaled 7239,6 mln.dollars. The principal export trade partners of Bolivia are USA, United Kingdom and Argentina. USA took 21,8% of total export. External debt by 1994 was some 4,11 bln.dollars.
The question is, could Bolivia repay its external (and internal) debts if the share of material production, as you can see, mainly of raw-material orientation forms 45% of GDP? The nation has 7,9 mln. person population and 3,6 mln. workforce for the execution of this fantastic plan. We should not forget about inevitable presence of transnational corporations that possessed completely or partly by mining industry together with local bourgeoisie. As for profit mostly it is brought out to financial markets of USA and Europe, partly reinvested in development of business and engrossment of land. Thus Bolivia, its people take risk gradually and definitely loose its sovereignty. Then the country-debtor will pass to hands of world capital tycoons.
Here comes another example: Chile as and exporter of products in 1996.

Table 21. Principal export goods of Chile, 1996 (mln.US$)

Source: South America, Central America and the Caribbean 2000 (Regional Surveys of the World). L., 1999. 8th Edition, p.204-205.

Crude materials and farm products form 88% in total export. 30% of them is falling to copper. Trade balance this year is negative and it equals -1,4 bln.dollars. GDP volume for 1996 expressed in U.S. money units was 66,5 bln.dollars. Main trade partners were – Japan, USA and Brazil. By 1994 external debt forms 8,9 bln.dollars; by 1998 total external debt totaled 31,5 bln.dollars. Population was 14,5 mln. people, labor force was 5,8 mln.
The point is can Chile someday catch up developed countries if the main export commodities are copper (as pre-fabricate), iron ore and scrap metal as well as foods and livestock. It is clear that world market price for this kind of goods is not high. That is why the price of material product in Chilean GDP structure is about 35%. Negative trade balance for Chile in recent years is rather normal then rarity. Financial troops of world capital will keep Chile on a short dog-lead just giving the possibility to survive on behalf of trading copper, livestock and scrap metal. Otherwise the country will be sold by auction according the wishes of world monopolies, owners of business in Chile. That is the peak of sapient and just relations within capitalist civilization at the highest stage of its development, at imperialistic stage.
Let me show you one more sample of international division of labour by capitalist way that indisputably can make backward nations more backward. So, we analyzing export of Guinea-Bissau, African country.

Table 22. Principal commodities of Guinea-Bissau export, 1998 (mln. US$)

The basic trade partners of Guinea-Bissau consuming cashew, cotton and fish are Spain, Portugal and Switzerland. Trade balance is also negative and equaled -36,4 mln.dollars. GDP was 215,8 mln.dollars, while number of workforce formed 540 thousand persons. External debt was 953 mln.dollars. Hence, there is no chance to repay any debt and somehow to reshape structure of this economy from nuts and cotton to something more high-priced. This is required for country to have means to invest in life quality, better education, health care, culture and science. This way African nation could finally disrupt enslaving division of labour. Otherwise world capitalism and local fat cats will get all benefits.
Nigeria is another African country. 95% of its export is crude oil. Nigeria may reckon on livable position on the continent until demand for petrol exists and price is quite high. However Nigeria completely depends on such predetermination of its collective destiny – to be a supplier of oil to world market. Even huge number of population (103 million) and workforce (30 million) could not give a chance to get off. Whether oil is out or demand is over then the country is doomed.
Subservient position of Sierra-Leone another African country toward world capital is also predestined by its export structure as raw material supplier. Export structure is following: 84,2% makes total quantity mineral resources of which bauxite is 14,26%, diamonds are 22,19% and ruthenium is 47,78%. At the same time trade balance is negative 'as a rule' (for 1994 in our example). Gross domestic product for 1994 formed some 950 mln.dollars, while the share of material production in GDP was within the limits of 65%. Raw material, even the most precious can not ensure prosperity of nation with 4,5 million population, since actual resources are not unlimited. Meanwhile external debt of Sierra-Leone has grown up to 1,1 bln.dollars by 1998. Hence there is no opportunity to compare diamonds with paper dollar gold. So world capital gains benefits once again, since its order is ruthless and irrational exploitation of world resources. Big money settles down at Bermudas and Cayman islands ("Cayman" sounds almost like "pocket" in Russian). Unfortunately IMF does not publish data about treasure islands in its 'IFS' monthly issues. Why it doesn't?
Nevertheless, if we take structure and proportions of export-import operations of any developed country we see that: firstly, they are balanced and, secondly the possibility of complete export or import dependence is absolutely excluded. The only exception could show Japan, this universal workshop for high-technology production of bigger volumes (for export), that predetermines huge amount of import deliveries (crude materials and prefabricates). Japan is urged to exert all its powers producing for export. To facilitate its commodity push off cheap yen is required, because enormous financial means derived from export repeatedly follow the commodities joining another money assets. Every player intends to take part in currency and stock exchange gambling at largest world stock market, in USA. That is one more mine of delayed action under worldwide economy: mythically strong dollar which is slightly secured by 'economic material' of commodities and assets together with the highest concentration of it in one sport, exclusive of Western Europe.

7) Gold of contention

System of IMF administrative and financial mechanisms, system of global financial parasitic capitalism had appeared as an effect of two opposite feelings merger. At the beginning faithful love of capital to gold had dominated. Then it was replaced by resistant hatred, as soon as capital had reached monopolistic stage of its development and giant bourgeois empires were formed. Their combat and armed fighting make this hatred more and more strong.
That is why we should look critically on a history of world economy within last 150 years from the viewpoint of gold role in making of world exchange relations, as well as of invention of gold substitutes a little later. These 'gold substitutes' also reinforced the myth of several currencies puissance.
Since the middle of 1870-s bank of England established golden standard. English banknotes had been freely exchanged for gold by fixed rate. By degrees several countries of Europe, USA and Japan had joined this standard. International settlements had been required an "anchor" that would bind all currencies. Gold became the anchor while English pound got leading currency for collation with "gold price". In this manner the foundation of international settlements was created. The main features of it were exchange rates fixed.
In XX century the world entered monopolistic stage of capitalist development. Scope of money circulation in international settlements increased enormously. This caused shortage of gold in national central banks for international payments. Dissatisfaction of formed world and wealth repartition between different gangs of capital had been expressed by the world war waged at the beginning of XX (1914). Eventually, larger part of world gold stores moved to USA, world war was out of here. After the war Great Britain and other countries tried to recover golden standard and fixed exchange rates, but nothing was resulted from. USA had grown almost monopolistic owner of world gold (46% of world stores in 1924 against 23% in 1914).
However exclusive financial position of United States enhanced parasitism of its economy and got it to crash when growing credit volumes unthinkably outstripped industrial boom. Stock markets agiotage effected to drastic increase of stock market price that was not secured by tangible assets. Little panic was enough to induce overwhelming stock crisis in October 1929. All hopes were broken, even partial golden standard could not work anymore for exchange relations stability all over the world.
Fluent exchange of English pound to gold was ceased in 1931. International monetary system wasn't able to recover after overall crash for several years. By the year of 1933 35 currencies are devaluated already on average 40-60%. In 1934 devaluation of dollar took place from 20 dollar to 35 dollar per troy ounce (31,1 grams) of gold, since gold is still remains the main liquid commodity of international money settlements. Currency blocks of different countries created (in accordance with interests of certain exchanges group) before the war for currency transactions stability also could not tackle the problems of state budget deficits, negative trade balances even in bigger countries. Cruel currency war forewent the Second World War. By the year of 1936 bits and pieces of golden standard were completely liquidated.
During the Second World War there were exchange restriction in all countries. Nevertheless, gold of the world was flowing firmly to American banks, afar from warfare in Europe. Anyway, in 1944 leaders of Western Europe and USA got together in Bretton-Woods to negotiate about new "American" game rules for world exchange market: 1) gold exchange standard as a guiding exchange, 2) fixed exchange rates with regulation of exchange adjustment and convertibility, 3) establishment of international exchange system. Newly founded International Monetary Fund (IMF) was to manage world exchange economy with a help of the World Bank. Headquarter or directorate of IMF is placed in Washington.
So, by the year 1948 24 billion dollars (or 68,5%) of 35 billion world gold stores were gained by the USA, 1,6 – by the Great Britain, 1,5 – by France, Italy, West Germany and Benelux countries altogether. Golden standard was now at hands of new empire, USA, instead of United Kingdom and was equaled 35 dollars per troy ounce. The axis of world exchange reserves remains gold, but the place of chief exchange was occupied by U.S. dollar. All the other exchange rates were now set only via dollar.
United States as heiress of British Empire was being filled magnitude like new "chieftain of the world" and waged one by one several wars. First war was in Korea, then in Indochina (Vietnam). War business as usual is closely related with huge outlays of money. Hence, since 1949 deficit of payment balance was getting higher and higher up to the beginning of 1970-s.
The rules set by IMF required all country-members to support steady parities of its currencies to gold or to dollar through fixed gold price expressed in dollar. Nevertheless imperial exchange had burst. So in 1947-1960 the share of dollars in IMF credits formed 87,6%, then in 1961-1971 it has fell down to 25%. In 1960 acute flash of distrust to dollar was observed that caused sharp increase of private demand for gold. Price of gold in London rose up to 41-42 dollar per ounce. They had managed to deal with gold rush only by selling 1000 tons of gold from federal reserve of the United States.
Right after this incident "golden pool" was established by the USA initiative. It was a special international institution that was in operate from fall of 1961 to march of 1968 and aimed at supporting stability of market gold price at level close to official price of 35 dollar per ounce by coordinated activities at London market. Share of USA in the «pool» formed 50%, while the rest 50% of expenditures were carried by 'Atlantic partners' of USA (central banks of West Germany, France, Switzerland, Great Britain, Netherlands, Italy and Belgium). Dollar position had weakened by growing quickness, therefore demand for gold increased essentially, then "pool" was urged to sell metal systematically from governmental reserves of country-members just to prevent the rise of gold market price. Since the middle of 1967 France refused to take part in further operations of this institution. During 1967-1968 crisis of two main currencies of the "pool" aggravated, this crisis together with increasing demand for gold (they had to sell 3000 tons of gold within 4 months) effected to breakdown of "golden pool". By March of 1968 special agreement was made about "double-level" gold market.
Meanwhile United States exchange is getting more and more vulnerable through gold. That is why IMF which is under full control of the USA was aspiring to make gold-producing countries especially South Africa (3/4 of the total mining) to forward the most of current production to market to hold gold price, so to say – dollar. Demand for gold got lower by artificial methods of IMF, that is by actual prohibition for central banks to buy gold at open market including newly mined one from countries-producers. By this manner IMF, USA with its more exactly, were trying to diminish the role of gold in international exchange relations and insure gradual implementation of special drawing right in International Monetary Fund known as SDR. Since January of 1970 credit surrogates of SDR were included in currency reserves of IMF. In August of 1971 the USA annulled exchange dollar to gold for foreign central banks. At the same year certain capitalist countries forced into application free "floating" of currencies, when there is no fixed exchange rates and no central banks obligations to carry on currency intervention to support exchange rate. During 1970-1973 they have started with experimental distribution of SDR to IMF members (9,5 billion SDR). At this point SDR was mechanically equaled to gold. SDR was balanced to 0,888 grams of gold. By the moment of its "going out" in 1973 and after regular devaluation SDR had "valued" as 1,20635 dollar. However, in 1974 gold content of SDR was cancelled.
Up to this moment the price of gold ounce had jumped several times" 38 dollars in January 1971, 186 dollar in December 1974, even 200 dollar by certain deals. In 1970-s dollar faced with possibility of losing its kinglike position amidst currencies. On the 18th of December 1971 dollar devaluation by 8%had happens there. On the 13th of February 1973 next dollar devaluation by 10%was there. Gold was getting up insistently. So, average year price of gold in 1977 was 147,7 dollar, in 1978 –193,2 dollar, in 1979 – 306,7 dollar, in 1980 – 612,6 dollar per troy ounce.
The USA was seeking for salvation of its currency from crush by using newly invented SDR. Since 1973 dollar rate has been expressing in SDR. From July 1974 after cancellation of SDR gold equivalent "estimating scale" of SDR content was set up there. It was formed by the following way. The currencies of 16 countries selected by IMF are evaluated by its market ratio to U.S. dollar, then its dollar equivalents are summed to give an SDR 'rate' in dollar terms. After that they set up exchange rates of SDR in other currencies. «The rate» of SDR (a monetary substance which has no its own value) is fixed daily since July of 1974. But the price of gold is growing in any case. IMF undertook new steps for saving 'beggar' dollar.
In January 1976 in Kingston (Jamaica) during the session of IMF Temporary committee corresponding amendments to IMF Charter were agreed, and they came into force since the 1st of April 1978. Amendments had foreseen: 1) elimination of gold from settlements between IMF and its members, 2) withdrawal of its official price and refusal of currency rate setting up based of gold parity, 3) IMF member-countries are given the right to operations with gold by market price. Gold which was a dollar 'heel of Achilles' had been completely abolished from massive international settlements inside IMF countries as well as from currency evaluation mechanism. Moreover, as early as 30th of August 1975 "ten group" countries (USA, UK, France, West Germany, Japan, Italy, Belgium, Netherlands, Sweden, Canada) made an agreement (valid up to the 31st of January 1978). This agreement envisaged refusal of gold fixed price support as well as operations with gold from their official reserves given total quantity of gold in reserves of these countries and IMF is permanent. In other words, it is allowed for main players of world exchange market to sell only newly mined gold while governmental reserves remain untouched.
Thus U.S. dollar had secured its "power" from the vicious relation with price-galloping gold. «American IMF» offered SDR instead of gold, a unique mean for overall finance mystification. Why did it happen this way? It was done due to formula of SDR calculation. So:
From 1974 to 1980 currencies of 16 countries had being taken for the calculation of SDR formula according the scheme "15 to 1", where "1" is dollar. The formula is following:

where
С1 – «estimating» component of certain currency inside SDR
А1 – rate of currency to U.S. dollar
В1 – specific gravity of the currency in SDR 'basket'
Kо – the former 'value' of SDR

where
D1 – dollar equivalent in the 'currency № 1'.

In the period from 1974 to 1980 number of such currencies was 16. All 16 currencies, more specifically its 'dollar equivalents' we are summing for the calculation of new unit valut of SDR. The resulting formula for SDR calculation will be as follows:

We have got Кn, or new figure of SDR which is not influenced by any exchange to dollar rate or "dollar to dollar" rate, as it seen from calculations. Only specific gravity of certain currency (one of fifteen) and "previous value" of SDR may effect on "SDR rate". «Previous» value and subsequent one as a rule depend on specific magnitudes of currencies in the "basket" set up by IMF, and nothing more can effect on it. So the «initial» SDR price equal 1,20635 dollar (1973) may be considered as «original» and every time it is «recalculated» dependently of IMF viewpoint. IMF 'viewpoint' is based on specific gravity of a country in world export of which IMF appoints latest exchange rates.
In other words nothing can influence on SDR "value" calculation except IMF directives, which are more or less voluntary in setting up the share of certain currency in SDR "basket". If we go back to export indicators, IMF suppose to set the share of certain exchange within the SDR "basket" in accordance with export volumes of certain country. But this way of calculation is quite doubtful. The question is why they should not take into account import figures of a country involved in SDR determination. For instance import of USA since 1969 almost every year exceed export. It means that America has stable negative payment balance of external trade (except 1973 and 1975). For the last 32 years (from 1969 to 2000) total payment balance deficit in current prices formed more than 1,8 trillion dollars! What are the backgrounds for the USA to anticipate the highest quota in world money determination – SDR – which are just another name (or alter ego) of dollar? Much more likely there is the only precondition – they're reckoning on military power, army and weapons dispersed all over the world as dollar-SDR security.
Expanding parasitism of American imperial economy works as permanent source of menace for its leading position in world finance. According the results of SDR calculation for the period 1974-1980, it got obvious that number of currencies used in formula should be reduces substantially. On the 1st of January of 1981 SDR had been calculating on basis of 5 currencies (by formula "4 to 1"), since in total evaluations share of dollar is SDR "basket" was only 33%. The portion of U.S. dollar in the "basket" had increased at once from 33% to 42%.
The meaning of ongoing action is as simple as primitive. In 1974 16 exchanges represent 143 exchanges of country-members, while in 1981 five currencies replace 143. If to say more exactly: the "fifth" (U.S. dollar) represent "four" currencies (pound, Deutsche mark, yen, French frank) before the mighty lord of world finance – SDR. All the rest currencies are equaled either to "five" or to SDR. Any edge you approach you ought to stick with dollar. Dollar got its power again for some period of time as well as assurance in its unpunished parasitism on world economy. Breakdown of Eastern block added energy to its power. Square of "dollar zone surface" had expanded for many million kilometers. All the former countries of "socialism" joined the IMF and took enslaving obligation of refusal exchange restrictions without accommodation by Fund. However, "free" resources of former socialist countries and corruptibility of bureaucrats are not limitless. The scrubs of national bourgeoisie also had grown and it is opposing dictates of yesterday empire. Alongside with that imperial habits of the United States had required to spend more and more money by non-productive way, that is for servicing their interests and investments of capital all over the world including increasing outlays on defense and government apparatus. Once again the share of USA in SDR "basket", namely in controlling interest of world finance started to look down.

Table 23. Dynamics of exchange shares in SDR "basket", 1981-2001 (%)

Since 1999 Deutsche mark (21%) and French frank (11%) are summing together forming the share of Euro (32%). As a matter of fact inside the 'basket' there is one more filter, in which currencies of 12 Euro-zone countries are presented by only two currencies. The 1999 war in Yugoslavia and huge military outlays carried by NATO country-members had decreased seriously share of Europe (Euro) in SDR by 2001. On the contrary U.S. dollar gets in 'SDR project' with its 45%. And it has no fear about incredible payment balance deficit of 254 bln.dollars in 1999.
Let us see dynamics of IMF statistic data. Thus from 1998 to 2000 the number of quotas in IMF which may influence on possibility of decision-making rise from 149 billions SDR to 215 billions. At that number of USA votes changed from 17,72% to 17,22%. Together with this 'small savers' quota of "IMF Company" had eroded. Quantity of SDR in the hands of USA increased from 37% to 43%. Only USA got total amount of gold untouched. Western European countries had lost 35,3 mln. troy ounces while developing ones had said goodbye to 6,7 mln. troy ounces. Totally world exchange reserves thinned down by 1342 tons of gold. The USA is not burden itself anymore by storing foreign currency. Its share in the U.S. reserves had diminished during even these two years from 2,54% (1998) to 1,96% (2000). Meanwhile Western Europe and Japan are urged to store both European monetary units and dollars (39,13% of world reserves, or 622 bln.dollars in 2000), selling and purchasing them by the IMF ('dollar') requests, satisfying insatiable hunger of U.S. parasitic economy. Less developed nations beside this must keep their reserves in dollars and in other "hard" currencies, paying for import as well as interest charges, advances and debts. So their part in world reserves forms 55,86% or 888,2 bln.dollars
Thus, USA has an extra reserve of convertible exchange that is in exchange belonging to "SDR basket" equaled to 1,5 trillion dollars. Let me remind that none has a right to put in exchange restrictions without Fund permission, according the obligation published beginning 1980 and signed already by 149 IMF-members. USA continues selling papers which actual value permanently slowing down. Thereat it is deadly afraid of free trade of gold. Hence IMF (USA) had arranged probable appear of gold at market by numerous conditions and restrictions. Gold as some last argument (besides oil) in a dispute of world economy and "paper" dollar could completely undermine false American power. The situation for millions investors to take back their money from banks and different U.S. stocks is quite unbelievable, since IMF (USA) dominates in world finance flows, given military dictatorship of dollar and overwhelming development of credit system. By the term "take back" money I mean situation when all payees want to give back some tangible assets like gold or any commodity, but not another 'real papers'. In this case whether it will happen immediately USA or whatever government would not deal with impossibility to cover the needs of all bearers of 'bills'.
By the way, IMF accommodates with loans to developing countries expressed in SDR, that is more costly 'dollars' (in average 1,3 times higher than 'normal dollar'). Nobody of developed countries borrows money in SDR. Meanwhile poor countries are indebted themselves by this paper gold in 49,9 billion SDR or 65,8 bln.dollars by the year 2000.

The danger lies in new rules of IMF. According these regulations all exchanges equal to SDR like to "anchor", while dollar equaling to SDR as to "exchange reserve". Meanwhile "reserve" is found itself as empty one; it is not related with some matter except "paper" of five countries (called national money). Whimsicality of situation is in the fact that calculating unit suddenly became a carrier of value. SDR is some sort of 'negotiated money' that do not related with commodity world directly but "by agreement" with top management of IMF. I repeat once again that money has no inherent value. They are only commodity shadows, they mediate exchange of commodity by commodity. There is no reason to endue money with its own commodity nature. It is metaphysics or some kind of religion known from Karl Marx as "money fetishism". Money is commodity as soon as it related with commodities themselves. As a matter of fact the sum of prices of any economy should be equaled to quantity of [national] money in circulation. SDR when being regarded like world money must give us an idea about the sum of commodities (and services) prices that produced by world economy, at least by those included in IMF-members. Instead of it SDR turns into some private commerce of American dollar and three more currencies (Euro, pound, yen), which as it looks like for them represent the price sum of all goods (and services) produced normally within certain working period.
Dollar during the last decades had created such heartful roulades of exchanges between each other that (by opinion of bourgeois economists) use up the whole variety of commodity production and turnover in world economy. In other terms sales and purchases of money material within the framework of few exchange pairs (dollar/Euro, dollar/pound, dollar/yen, Euro/pound etc.) substitute the overall production and interchange. Isn't it nonsense?
In accordance with hybrid SDR created by IMF and its specific relations with dollar and the rest (now three) exchanges we may assert that dollar, Euro, yen and pound – are one and the same exchange of empire-parasite which had engulfed and melted all the other currencies long ago. Anytime it breaks surface of world finance ocean anywhere by the name of "new exchange" for refreshing on behalf of exchanges that are not belong to "closes circle" of SDR-dollar. They had become 'visibly' independent from each other, so it is difficult to distinct the falling of one in the increasing of another. This is an intimate motion inside communicating bottles of a single parasitic empire exchange of developed countries. These are waves in one and the same "ocean", and nothing more. On the chart below you can see such fluctuations in reversed phases relatively each other these two strange group of currencies: one is dollar, another is mark, pound, yen, frank got together (conventionally named as "eurodollar").

Figure 1. Dollar fluctuations “within the limits of SDR”, 1981-2001.

Due to concentration of capital the calculation of SDR "value" within the last twenty-eight years has simplified from 16 to 5 exchanges, and now from five to four ones. Next step of this motion is supposed to be full dictate of dollar through IMF and NATO over planetary economy. But we may consider this economy as military-centralized rather than market economy, totally monopolistic economy (as it was in former USSR). The single state monopoly was a formal 'casus belli' for bourgeois countries to fight with USSR and East block of state socialism. And now they move towards Big-Brother-like State with no doubt.
Eternity of parasitic living of "dollar" is secured on one side by rigid regulations set by IMF, by plurality of its masks (Euro, pound, yen) and on another side by psychological power of money fetishism, by blind faith in "dollar" like some absolute. For faith not to thin it is regularly support by military activity – by invasions, by clashes and wars. Wars bring appearance of new military bases possessed by Dollar Empire, which serve sufficient security of universal dollar financial "assets".
Crisis of parasitic economy is permanently growing. It takes more and more money to maintain its power especially faith in it, faith in a main symbol of its puissance – dollar. A little panic will be enough (as it has been seen in September 2001) to undermine even "fourfold" strength of dollar and SDR.
Let's recall once more, the causes of "myth" breakdown are: weakening of USA market position by some commodity groups, growth of economy parasitism (reducing of material production share in GDP, that leads to excess of import over export), building up of military expenditures as well as very expensive military actions abroad. USA instead of usual economic relations can offer financial colonialism secured by military presence in all regions.
Upturn of military-industrial complex (MIC) in economic and physical terms is squeezing out all this "military commodity mass" outward, to other countries and continents. Sales of weapons and military services worsen economy of a country-purchaser, wearying economy by military-governmental parasitism. It gives an illusion of runup in economy war-oriented but not for a long period of time. More and more climes are trying to follow the American economy parasitism where specific gravity of material production (e.g. in employment and in GDP structure) steadily going down. This way of development causes recessionary events in economy, which result in political paranoia ideas like expansion of NATO or 'star wars'. Appearance of such ideas is closely connected with interests of bigger military-industrial corporations, i.e. with increasing increment of unsecured outlays. That's what I call economic parasitism.
The emergence of different concepts like "NATO expansion" of "struggle with international terrorism" and whole series of wars devoted to this within last ten years are evidences of the most cruel crisis of world bourgeois economy that had reached its final allowed entries of parasitism. There is no place to develop extensively except on behalf of territories and labour force of rivals. Hence, the war is required again, isn't it? Is there any way to get out of crisis? Otherwise the war is always hanging around.

Section II>>